The state of Nebraska experiences 220 days of sunlight annually, rendering it an appealing location for the installation of a solar system.
Additionally, Nebraska offers net metering and favorable loan rates, facilitating a more accessible avenue for those contemplating a solar investment.
Prior to embarking on the decision to adopt solar technology, it is advisable to delve into a comprehensive understanding of the solar incentives presently accessible in Nebraska.
While Nebraska does not offer tax incentives specific to the state, residents can capitalize on broader state-wide and national incentives, including the federal Solar Investment Tax Credit, net metering, and fixed-rate loans.
The Nebraska state government has collaborated with leading lenders in the state to implement loan programs, ensuring access to low-interest, fixed-rate loans for individuals undertaking solar installations in Nebraska.
Federal Solar Tax Incentives
As part of the 2022 Inflation Reduction Act, the federal government extended the Solar Investment Tax Credit, easing cost barriers for solar projects.
Homeowners can receive a one-time tax credit of 30% of their solar project cost, translating to potential savings of $4,800 for an average $16,000 project. Notably, the credit will gradually decrease, starting in 2033, reducing to 26%.
Net Metering in Nebraska
In Nebraska, homeowners with solar systems can benefit from net metering, a program allowing them to receive credits on their utility bills for excess energy generated by their solar panels.
These credits are applied towards subsequent billing periods.
It’s important to note that net metering is applicable to solar systems up to 25 kW in Nebraska, and the amount of credits is subject to variation as utility companies in the state establish the electricity rates.
Solar Panel Cost in Nebraska
The expenses associated with solar panels can vary, ranging from $4,500 for smaller projects to as much as $37,000 for larger-scale endeavors.
On a national average, solar projects typically incur costs of around $16,000.
The overall cost of a solar project is contingent upon several factors, including the system’s size, the number of panels, the type of system, and the specific panels utilized.
For instance, considering different system sizes, the cost breakdown is as follows:
- 6 kW System: $20,020 (or $14,014 with a 30% Federal Solar Tax Credit applied)
- 8 kW System: $29,360 (or $20,552 with a 30% Federal Solar Tax Credit applied)
- 10 kW System: $36,700 (or $25,690 with a 30% Federal Solar Tax Credit applied)
Nebraska Dollar and Energy Savings Loans
Additionally, Nebraska’s Dollar and Energy Savings Loans program provides fixed-rate loans to homeowners throughout the state through collaborating lenders.
The interest rates offered are at 5%, 3.5%, or lower, with loan terms extending up to 15 years. The loan maximums vary from $125,000 to $500,000, contingent upon the type of residence where the solar installation is being undertaken.